Image Image Image Image Image Image Image Image Image

Public Sector

Public Sector Pay Cap to be lifted

September 15, 2017 | By | No Comments

Good afternoon,

I hope you have had a good week and that this horrible weather doesn’t hang around too much longer. There was excitement this week as the new iPhone specs were released. What do you think of the new iPhone X? Do you think it is worth the money? Moving onto the blog, this week we are going to be looking at the Public Sector Pay Cap update that has been in the news recently.

Back in 2010, Public Sector pay was frozen for two years and since 2013 pay rises have been capped at 1%. In the news earlier this week we have seen that the cap on public sector pay rises in England and Wales will be lifted. Police and Prison Officers are the first to see a pay rise, the Police will receive a 1% pay rise along with a 1% bonus and Prison Officers are being given a 1.7% rise. The rises that have been offered are still below the rate of inflation which has risen to 2.9%.

On Wednesday this week Firefighters were offered a 2% pay rise, but declined as the Fire Brigades Union stated that “the offer included a whole host of strings and failed to clearly address the pain our members have experienced as a result of years of falling real wages”. Also on Wednesday the DUP showed their support for Labour’s motions for the pay cap being removed for NHS workers and it passed without having to go to a vote. The next day, unions that represent NHS workers wrote to the chancellor to demand a 3.9% pay rise along with an additional £800 to make up for previous years.

Currently there hasn’t been any updates on whether the NHS workers will be awarded the 3.9% pay rise, but it will cost a total of £2.5 billion if the pay rise is implemented and that is without bringing into consideration any other public sector pay rises. What are your thoughts on the situation? Are the pay rises enough/too much? Let us know in the comments below.

I hope you have a great weekend.

Warm regards,

Sheree

 

Sources: http://www.bbc.co.uk/news/health-41274088

http://news.sky.com/story/labour-motion-on-nhs-pay-rise-passes-without-opposition-11033935

http://www.independent.co.uk/news/uk/politics/conservatives-suffer-defeat-on-labour-motion-calling-for-higher-pay-for-nhs-staff-a7945241.html

 

UK Government cut down on Legacy Tech Contracts

August 18, 2017 | By | No Comments

The weeks seem to be moving so quickly this year, it feels that as soon as I put out the blog I am writing the next one. Well that only means we are working hard and getting things done at EGB and look forward to even further success. Maybe the reason it feels so fast is that there are two birthdays close together, last week mine, this week our Operations Manager Sheree. She loved the gifts and the Beauty and the Beast themed birthday cake that the office gave her.

Onto this week’s blog, it is taking a look into the Public Sector disaggregation of contracts which have started to affect some large businesses. A recently published report by TechMarketView has shown that certain business that handle contracts for the Public Sector are getting hit by the Government’s contract disaggregation. Simply put, the government wanted to remove the Oligopoly that certain business had gained over the IT contacts that the government were offering. To name a couple of the businesses that were affected are: BT and DXC (Merger of Hewlett Packard Enterprises and Computer Sciences Corporation). This would be down to the fact that these two companies held a large share of government contracts.

The hit hasn’t been insignificant either, with DXC’s revenue (Based on TechMarketView’s UK Public Sector Software, IT & Business Process Services (SITS) top 20 ranking) dropping 11% for the year of 2016 to $1.2bn. The BT group saw a drop of 20% in its sales through the public sector coming to £513m, with Serco suffering the worst drop of 45% down to £194m. “It was those that had a large legacy footprint in central government, that continued to suffer heavy declines: most notable are DXC and BT,” said the report.

This could spell out good news for contractors as with these IT contracts being split up maybe some requirements will trickle down to be handled internally rather than outsourced to a company. Or perhaps with small organisations taking on the contracts there will be more chance for Contractors to be assigned. It will take time to tell if there is a benefit, though it may not be realised at all with Brexit on the horizon.

There are some comments that suggest the disaggregation of contracts will come to a pause as Brexit throws too many spanners into the works. The mind set being that it would be far easier to renew current contracts rather than to retender them for different businesses which would be a far more complex process.

It wasn’t all bad news, at least based on the figures, for companies who are part of SITS list. Capita who are on the top of the list had a 3% increase of its Public Sector Sales taking it to 1.8bn, this accounts for roughly 47% of their total sales. Though the report emphasises that this gain is not a true one as “Capita acquired Trustmarque, the software reseller and services arm of Liberata Group in June 2016.” If balanced out would infer reduced revenue rather than growth, so we take that with a little bit of salt.

What are your views on the disaggregation of contracts by the government; do you think it is a waste of time or do you think this will end up providing better services? Whatever your view let us know in the comments below, as always, we are happy to hear from you. I am not too sure where I stand on it, just hope that it means there are more opportunities to help you all get some contracts.

Thanks for reading,

Dan

Sources:  https://www.theregister.co.uk/2017/08/15/big_legacy_tech_companies_in_gov_start_to_feel_pinch_report/

Public Sector Employment Statistics

June 2, 2017 | By | No Comments

June is already upon us, time is sure flying this year and we can only be happy with how it has played out so far. The roles are flying in and we are securing more and more interviews and job offers for our candidates, even the weather is getting better, though I hope it stays that way and we have a nice long summer. That way we can get a few BBQs in, a few of the team have already had some. Moving onto the topic for this week, we are looking into data that the Office of National Statistics (ONS) released not long ago with regards to public sector employment.

ONS’ latest Workforce statistics release gave us insight into where the public sector is employing its staff for both full time and contract workers. The public sector employs 5.44 million people in total, this is compared to the 26.42 million employees of the private sector. Within the Public Sector these jobs are mostly split into two categories, those considered to be Local Government which stands at 2.18 million employed and Central Government which currently employs 2.95 million.

The sole largest employer in the Public Sector is (perhaps unsurprisingly) the NHS which alone employs a staggering 1.59 million. Combine that with the recent news of the NHS removing their blanket IR35 status is good news for contractors. Other Public Sector bodies such as the Police only employ 245,000 and the Civil Service employs 416,000 people.

It is also interesting to note that there is quite a shift in public sector employment depending on region. Northern Ireland has the highest percentage of employment being within the public sector, with nearly a quarter (24.8%) being employed by the public sector. Scotland are next with 21% and Wales then with 20.8% respectively. London has the lowest rate with 14.5%, though that may come down to the higher population count compared to other areas. The north east takes the highest employment percentage in England with 20.2%.

That was just a little look into some statistics in Public sector recruitment, nothing too heavy for this lovely weather we are having. Does anything surprise you of the details that we presented, maybe the low public sector workforce in London or on the other side the high Northern Ireland employment? Either way we would love to hear your thoughts.

Warm Regards,

Dan

 

Sources: https://www.theguardian.com/wellbeing-at-work/2017/apr/26/who-works-where-uk-public-sector

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/may2017#public-and-private-sector-employment